{"id":12679,"date":"2023-03-13T20:04:53","date_gmt":"2023-03-13T20:04:53","guid":{"rendered":"http:\/\/TheNextWeb=1394764"},"modified":"2023-03-13T20:04:53","modified_gmt":"2023-03-13T20:04:53","slug":"sale-of-svb-uk-minimises-disruption-to-british-tech-says-bank-of-england","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=12679","title":{"rendered":"Sale of SVB UK \u2018minimises disruption to British tech,\u2019 says Bank of England"},"content":{"rendered":"\n
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The British tech sector can rest a little easier tonight after the UK arm of Silicon Valley Bank (SVB) was sold to HSBC for just \u00a31.<\/p>\n

The intervention followed last week\u2019s collapse of the subsidiary\u2019s California-based parent company. The Bank of England (BoE) intervened over fears that mass withdrawals in the US would spread to the UK business.<\/p>\n

Many of SVB UK\u2019s 3,300 customers, which include numerous VC investors<\/a> and startups<\/a>, warned they would go bust if their deposits were lost. The BoE had initially planned to put the bank into insolvency, which would have only guaranteed protection for deposits worth up to \u00a385,000, or \u00a3170,000 for joint accounts.<\/span><\/p>\n

The deal with HSBC supersedes the insolvency plan. Customer deposits can now be protected without requiring taxpayer support.<\/span><\/p>\n

\u201cThis action has been taken to stabilise SVB UK, ensuring the continuity of banking services, minimising disruption to the UK technology sector, and supporting confidence in the financial system,\u201d the BoE said in a statement.<\/span><\/p>\n

After the deal was announced, SVB UK said it was resuming normal operations.<\/p>\n

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Following the announcement that @HSBC_UK<\/a> has acquired SVB UK, we’re resuming normal operations from today. Our clients should not notice any significant changes, however, there may be short delays across the next few days as we return to business as usual. Thanks for the support<\/p>\n

\u2014 Silicon Valley Bank UK (@SVB_UK) March 13, 2023<\/a><\/p>\n<\/blockquote>\n

TechUK, an industry lobby group,<\/span> said the sale will be a relief for the British tech ecosystem.<\/p>\n

\u201cWithout access to their deposits these companies faced the prospect of not being able to pay staff or rent or suppliers \u2014 in short many would also be facing insolvency and the many thousands of people working in this part of the tech sector would be very worried about their jobs!\u201d said techUK CEO Julian David.<\/p>\n

For HSCB, the acquisition of all SVB UK\u2019s assets for a nominal \u00a31 could be an extremely good deal. The Bank of London, which had also submitted a rescue bid, described the sale as a \u201cmissed opportunity.\u201d<\/span><\/span><\/p>\n

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\u201cIt cannot be right that once again the heritage banks that have provided a poor service to UK entrepreneurs over many years benefit from their already dominant position,\u201d the clearing bank said in a statement.<\/span><\/p>\n<\/div>\n<\/div>\n

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A statement from @thebankoflondon<\/a> regarding @SVB_UK<\/a> (Silicon Valley Bank UK Limited) \u2013 7:08AM London, March 13 2023. pic.twitter.com\/c6gFHucWSI<\/a><\/p>\n

\u2014 The Bank of London (@thebankoflondon) March 13, 2023<\/a><\/p>\n<\/blockquote>\n

Legal experts are already pointing to the lessons for startups. Charles Fletcher, a partner at law Mishcon de Reya, recommended several steps that businesses can take to avoid the risks that SVB UK has exposed.<\/p>\n

\u201cKey actions include keeping corporate accounts with more than one bank, having an emergency funding<\/a> plan to avoid cashflow squeezes, separating funds from different sources and taking a strategic approach to managing currencies,\u201d said Fletcher.<\/p>\n

\u201cThese should accompany fundamental business planning and management steps, such as a detailed risk register and crisis management protocols.\u201d<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The British tech sector can rest a little easier tonight after the UK arm of Silicon Valley Bank (SVB) was sold to HSBC for just \u00a31. The intervention followed last week\u2019s collapse of…<\/p>\n","protected":false},"author":1,"featured_media":12680,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/12679"}],"collection":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12679"}],"version-history":[{"count":0,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/12679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/media\/12680"}],"wp:attachment":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}